Project detail - RED SEA SOLAR POWER S.A.E.

RED SEA SOLAR POWER S.A.E.

Who is our client

Red Sea Solar Power SAE is a special purpose vehicle incorporated in Egypt to develop, construct and operate a PV solar power plant. The sponsors are Scatec Solar ASA, Norfund from Norway and Africa 50, a multilateral investment platform. The Project is part of a portfolio of six 50MW each solar PV plants, to be developed by the same sponsors in the BenBan complex located in the Aswan province.

Funding objective

FMO has committed a B-loan under the EBRD umbrella. FMO’s funding will be used towards constructing a 50 MW PV solar power plant in BenBan complex.

Why we fund this project

FMO has committed to fund this project to support Egypt to diversify its energy sources by exploiting the country’s renewable energy potential. The FiT projects will also be among the first private renewable energy investments in Egypt, thus setting the precedent for future developments in the sector.

Environmental and social rationale

This transaction has been categorized as Category B+, in line with FMO environmental and social risk categorization. Due to the size for the scheme, with several solar projects to be developed at the same time, the environmental and social cumulative impacts are significant. Therefore, a Strategic Environmental and Social Impact Assessment has been developed for the entire Benban complex. Developers have also developed a specific Environmental and Social Impact Assessment for their respective plots, all within the framework of the Strategic Assessment. The major impacts are generated through Construction Phase (8-10 months). For this, mitigation plans have been developed. During the Operational Phase, impacts are negligible. The following Performance Standards (“PS”) are triggered by the transaction: PS1: Assessment and Management of Environmental and Social Risks and Impacts PS2: Labor and Working Conditions PS3: Resource Efficiency and Pollution Prevention PS4: Community Health, Safety and Security PS5: Land Acquisition and Involuntary Resettlement PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources PS 7 is not triggered because no impacts on local groups qualifying as Indigenous were identified. PS 8 is not triggered, as no cultural objects or places were identified.